The 33-year-old claimed the 140lb title six years after he was crowned lightweight champion of the Commonwealth five pounds down.
Limond lost that title when he took a high-risk defence against the burgeoning talent of Amir Khan. He almost stopped the future world champion before being robbed by a long count with the fight being stopped after seven torrid rounds.
But after the Glaswegian destroyed Glenboig's Eddie Doyle in just one minute 56 seconds at the St Andrew's Sporting Club on Monday, Watt says Limond's second reign can be a long one.
The ex-WBC lightweight champion said: "I think Willie showed on Monday night that if he wants to stay champion at Commonwealth level then he can, for a long time.
"He did everything he was asked of against Doyle. He really jumped on him from the start of the fight and used all his experience.
"I was very impressed with the way that Willie never wasted a punch and also the angles he threw them from.
"Willie has had a long career with a lot of tough fights. He's hit the crossbar on a few occasions and it would be great to see him really cash in.
"To me he looks like he still has a couple of good years in him. But I'd like to see Willie defend the title in Glasgow in the spring.
"Then I gather he will fight Aberdonian Lee McAllister. I'd fancy Willie to stay champ for a while this time around and he deserves that."
The ring legend also had words of consolation for the unfortunate Doyle.
Watt said: "I feel sorry for young Eddie, I really do. He obviously came with a game plan, as you would expect of any fighter trained by John McDermott, but just didn't get the chance to put his plans into action.
"Eddie is a good prospect and I'm sure what happened on Monday will make him even more determined to come again.
"Forty years ago on the same show I suffered one of the most disappointing defeats of my career against Ken Buchanan but it didn't stop me bouncing back."